EUR/USD Bears Maintain Control, Downtrend Likely to Resume After Brief Consolidation

EUR/USD edged higher on Thursday morning as sellers paused following a sharp three-day decline that gathered momentum on Wednesday, driving the pair down 0.5% on the day.

The euro remains under sustained pressure amid growing expectations of a more hawkish Federal Reserve policy path, a view reinforced by stronger-than-anticipated U.S. flash PMI readings for September.

Oversold conditions on the daily chart appear to have triggered a modest round of profit-taking. However, the rebound remains limited and is unlikely to undermine the broader bearish outlook, instead serving as a pause before a potential renewed push lower.

The pair continues to trade within an extended third wave of a five-wave decline from the August 28 peak at 1.1711, keeping pressure on the 200% Fibonacci expansion at 1.1362 and the July 28 low at 1.1353, both of which protect the key support level at 1.1324, the 2026 low recorded on June 24.

Any stronger recovery attempts are expected to remain capped by resistance in the 1.1470-1.1480 zone, where the broken 61.8% Fibonacci retracement, the daily cloud base, and the falling 10-day moving average converge. A failure to clear this area would keep the broader bearish structure intact and may provide more attractive levels for sellers to re-enter the dominant downtrend.

Res: 1.1415; 1.1440; 1.1480; 1.1500
Sup: 1.1368; 1.1353; 1.1324; 1.1300